TerraFunds - Tax-Smart Investments
Invest/Subscriber Forms Home
Marketing Materials Tax Info
Prices & Performance About Us
TerraTundra Foundation Contact Us
 
 
   
 
Frequently Asked Questions
  1. What products does Terra offer?

  2. What is a Flow-Through Fund?

  3. What Flow-Through Fund does Terra offer for 2017?

  4. Does Terra offer a mutual fund?

  5. Does Terra only invest in shares of public companies?

  6. How do I buy Terra Funds?

  7. When can I purchase these funds?

  8. Do I need to fill out a Subscription Agreement?

  9. Do I need to be an accredited, eligible or sophisticated investor to purchase?

  10. Are the Funds available in all provinces and territories of Canada?

  11. What is the minimum investment amount?

  12. What is the minimum investment term and when can I redeem my investment?

  13. When can I expect my tax deductions and tax credits?

  14. What kind of return can I expect?

  15. What is the advantage to donating my shares to a registered charity?

  16. Do the investments use leverage?

1. What products does Terra offer?
Terra’s investment products for 2017 include one flow-through fund and three corporate class resource mutual funds sold by offering memorandum in all provinces and territories of Canada.

2. What is a Flow-Through Fund?
The Terra 2017 Short-Term Flow-Through LP is a limited partnership that invests primarily in public junior oil & gas or mining companies. The fund can also invest in a select number of private oil & gas firms. These resource companies then “flow-through” exploration and development expenses to the LP which allows investors to claim these expenses as income tax deductions and tax credits and reduce their taxes accordingly. To learn more about flow-through investing, please click here.

3. What Flow-Through Fund does Terra offer for 2017?
For 2017 Terra offers one diversified resource flow-through fund that invests in the “Energy” and “Mining” sectors so investors benefit from diversification in both sectors.

4. Does Terra offer a mutual fund?
Yes. Terra offers three corporate class mutual funds: Terra Small Cap Growth Fund; TerraTundra Dividend Growth Fund; and TerraTundra Money Market Fund. The Terra Small Cap Growth will invest in approximately 50 to 100 equity securities, primarily of small and mid-cap Canadian companies. The TerraTundra Dividend Growth Fund will invest in approximately 50 to 100 dividend and distribution paying equity securities, primarily of Canadian companies. The TerraTundra Money Market Fund is invested in short-term, high quality money market instruments. Investors also have the option to switch between each fund in a tax-efficient manner.

5. Does Terra only invest in shares of public companies?
No. The Terra Short-Term Flow-Through LPs may invest in a select number of private oil & gas firms.

6. How do I buy Terra Funds?
Terra flow-through funds and mutual funds are purchased through your broker or financial advisor via the FundSERV investment fund order system or by direct purchase. For purchases through FundSERV, settlement is T+3.

7. When can I purchase these funds?
The Terra 2017 Short-Term Flow-Through Fund is now available for purchase. Terra’s mutual funds are also available to qualified investors.

8. Do I need to fill out a Subscription Agreement?
Yes. All investors are required to complete a Subscription Agreement. Trades through FundSERV require a Subscription Agreement and may also require minimal additional paperwork (Note: Please consult your compliance department about your company’s procedure.)

9.  Do I need to be an accredited, eligible or sophisticated investor to purchase?
Yes. Terra’s funds are only available to an individual resident of Canada or a Canadian corporation or institution meeting the Eligibility Criteria for Investors.

10. Are the Funds available in all provinces and territories of Canada?
Yes.

11. What is the minimum investment amount?
The minimum investment amount for accredited and eligible investors is $5,000 in all mutual funds, except for Class F shares of a mutual fund, whose minimum investment is $10,000. The minimum investment for Terra 2017 Short-Term FTLP is $1,000 for A & F Class units. The minimum investment for a sophisticated investor is $150,000.

12. What is the minimum investment term and when can I redeem my investment?
The investment term for Terra’s 2017 Short-Term Flow-Through LP is to June to November 2018, after which investors can choose to redeem or retain their investment in Terra’s resource mutual fund, subject to minimum term and redemption features.

13. When can I expect my tax deductions and tax credits?
Investors will receive on or about March 31 of each year, a T5013 tax form (or RL-15 form for Quebec investors), which provides the tax deductions and tax credits an investor may claim on his or her current income tax return.

14. What kind of return can I expect?
There are 2 components to the return provided by Terra flow-through funds: (1) substantial tax savings; and (2) investment returns from the portfolio of resource companies in the fund. Terra’s mutual funds provide the opportunity for additional longer term returns.

15. What is the advantage to donating my shares to a registered charity?
By donating the flow-through share investment to a registered charity, an investor can combine the tax benefits of a flow-through share with the preferential charitable deduction available for donations. Please see Charitable Donations.

16. Do the investments use leverage?
No leverage is permitted in either the mutual funds or flow-through limited partnerships.

 


top^

 
  © 2017 Terra Fund Management    SITE MAP     LEGAL     GOVERNANCE